4 TIPS ON USING TECHNICAL INDICATORS For OANDA: XAUUSD By VasilyTrader
Technical indicators are an essential part of.
With several different indicators on a chart, the trader aims to spot oversold / overbought conditions in the market and make a profit.
While I don’t consider myself to be an expert at trading indicators, here are some great tips that will help you dramatically improve your trading with them.
# 1️⃣ Don’t overload your chart with indicators.
There is one mistake among so many traders:
more indicators on the chart lead to increased trading performance.
Following this statement, traders add dozens of technical indicators to their charts.
The graphic becomes unreadable and messy.
The trader gets lost and makes bad trading decisions.
Instead, add 1-2 indicators to your chart. This will be enough for you to make correct judgments. Do not overload your chart and try to make it clean: your task is to analyze the price action first and only then to look for additional clues by reading the indicators.
# 2️⃣ learn what exactly the indicator shows
The data derived from the technical indicator should be meaningful to you.
You need to understand the logic behind its algorithm.
You must know exactly what it is showing you.
Confidence in your actions plays a key role in trading.
During times of loss and loss, many traders abandon their trading strategies. It happens because they lose confidence in themselves.
You will only be able to overcome negative trading periods by being confident in your actions.
Only know exactly what you are doing, what is leaning on and why you can continue even in dark times.
# 3️⃣ Use indicators that complement each other
Many indicators are based on the same algorithms.
Most of the time, the only difference between them is a minor change in its input variables.
For this reason, such indicators leave very similar clues.
In order to improve your trading, try to rely on indicators based on absolutely different algorithms. They must complement each other,
not show you the same.
# 4️⃣ Price action first!
Remember that your trading strategy should be based primarily on price action. Trend analysis and structural analysis should be given priority.
You need to know how to make predictions based on a bare chart.
Indicators should be applied as confirmation signals only.
They should support the trading strategy but not be the core of it.
❗️Remember that the indicators will not do all the work for you.
The indicator is just a tool in your toolbox that should be applied correctly and in strict combination with other tools.
Would you like to add more tips to this list?
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